An inflation gauge closely tracked by the Federal Reserve rose 6.3% in April from a year earlier, just below a four-decade high set in March and the first slowdown since November 2020.
Gasoline prices are displayed outside a convenience store as a motorist drives by, Thursday, May 26, 2022, in Thornton, Colo. Experts are expecting a flush of travelers at airports and on the nation's byways during the long Memorial Day weekend, which marks the start of the summer travel season, in spite of high fuel costs.
Still, inflation remains painfully high, and it's inflicting a heavy burden in particular on lower-income households, many of them Black or Hispanic. Surging demand for furniture, appliances and other goods, combined with supply chain snarls, began sending prices surging about a year ago. Powell has said the Fed is aiming for a “soft or soft-ish” landing, in which wages, consumer spending and growth slow, but the economy avoids a downturn. Most economists say that while such an outcome is plausible, they doubt it can be achieved.
Other trends, however, suggest that core inflation may continue to slow in the coming months. Retailers have reported rising stockpiles of televisions, patio furniture and other goods for the home as consumers have shifted their spending more toward travel and services-related goods like luggage and restaurant gift cards.
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